Newmont would spend elsewhere if Conga uneconomic

April 27, 2012|Reuters

April 27 (Reuters) - Newmont Mining Corp would putits money into projects in other countries if environmentalchanges to its proposed $4.8 billion Conga gold mine in Peruproved economically unfeasible, the head of the U.S. companysaid on Friday.

"We have other options if it is not favorable," ChiefExecutive Officer Richard O'Brien told Wall Street analysts on aconference call.

He said the Conga plan, approved by Peru's government inOctober 2010 but the subject of intense protests by farmers andenvironmentalists, was reviewed this year by independentexperts, who confirmed that the environmental impact metPeruvian and international standards.

But it also recommended some changes in the location of awaste dump near lakes to which local opponents have objected.

O'Brien said Newmont was assessing the economic implicationsof the changes. "If Conga cannot be developed ... in a safe,socially and environmentally responsible manner ... then we willreallocate that capital to other development projects in ourportfolio, including opportunities in Nevada, Australia, Ghana,and Indonesia."